Tag
FUEL SUBSIDIES
CBN Governor underscored the nuanced nature of combating inflation, emphasizing that there is no “magic wand" solution.
A recent survey conducted by Nairametrics following President Bola Tinubu's announcement on May 29 declaring an end to fuel subsidies has revealed a notable decline in the sales of gasoline generator sets in Nigeria.
KPMG Nigeria believes that if Nigeria were to keep the fuel subsidy regime, the country will suffer from underdevelopment.
Many Nigerians are already feeling the impact of President Tinubu's declaration on fuel subsidy removal amid skyrocketing transport costs
A successful subsidy removal requires gradualism, transparency, and social protection to avoid sudden shocks to the economy
According to the report, subsidy costs are deducted from oil revenues accruing to the federation account by the limited liability company, Nigerian National Petroleum Corporation (NNPC) Limited
FX crisis, high inflation, and fiscal pressures generated by fuel subsidies, according to the World Bank, distort the benefits of a growing non-oil sector and high oil prices.
IMF has insisted that the payment of fuel subsidy and maintenance of an official exchange rate would not yield favourable results.